Mobile Video Market Set for Growth

The nascent mobile video market is expected to grow by roughly eight times its 2005 revenue size the end of the decade. A JupiterResearch report, “U.S. Wireless Forecast, 2005 to 2010,” details projections.

Currently, about two percent of mobile phone users say they subscribe to a video service on their wireless plan. Seventeen percent have an interest in watching live TV content on their phones, and 11 percent would like to view short video clips on their handsets.

“Five percent of mobile subscribers will use video,” Julie Ask, research director at JupiterResearch told ClickZ Stats. The figure refers to mobile video consumption in five years time.

Adoption will increase as mobile subscribers upgrade their handsets to video-capable phones, and from free trials from the carriers. “They’re doing things to make it more appealing,” said Ask. “Certainly it’s becoming a standard functionality on more and more handsets.”

In 2005 revenues from mobile video content reached $62 million. By 2010, the number is expected to reach $501 million.

While advertising in the mobile video space shows potential, reports are mixed regarding consumer acceptance. An earlier report from Starcom identifies a preference for paid content over ad-supported video. Another report from Points North Group demonstrates a willingness to view ad-supported video.

The forecast was derived from a model that captures current activity and five-year forecasts of user participation and sales.

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